Finding the Benefits of Sales Tax Automation with Vertex

As tax compliance grows more complicated and tax regulations grow more cumbersome, organizations are always searching for innovative solutions to help overcome these issues. One of the most common strategies is to rely on automation.

SAPinsider’s recent Global Tax Management 2024 – Benchmark Report found that centralizing and automating tax data control framework across all transactional systems is one of the top actions that SAP organizations are taking to support their global tax management strategies.

Examining the Benefits of Sales Tax Automation

Many organizations do not understand the potential impact that sales tax automation can have on the overall business. To illuminate some of these benefits, the tax automation experts at Vertex highlighted three key benefits that sales tax automation can offer:

Scalability – As companies grow and expand, manual sales tax solutions would need to be updated within each system. A centralized, cloud-based automated tax engine removes this need. Tax engines like those from Vertex continually update tax content across jurisdictions based on regulations. This not only keeps tax calculation up to date, but removes the burden from IT.

Accuracy – Tax calculation and payment errors are worst-case scenarios for tax and finance teams. One of the top reasons why more and more companies are adopting tax automation solutions is to ensure that all tax returns are accurate. This not only reduces the chances of penalties or audits but helps build trust with tax agencies.

Future-proofing – As companies adopt more advanced solutions, the benefits begin to accrue over the course of many years. When organizations automate sales tax workflows, it helps to reduce risk – not just of audits, but also the risk of disrupting IT operations. Freeing up IT gives businesses an enhanced ability to innovate. Automation is a fundamentally data-driven endeavor. When sales tax functions are moved to the cloud, they can evolve and improve over time. When these workflows become more efficient, even the smallest improvement stack up over time and save companies significant time and money in the long run.

What This Means for SAPinsiders

Tax and finance teams are tasked with being more efficient and delivering intelligent insights. Organizations can no longer afford to rely on outdated manual workflows. More and more, companies are turning to partners like Vertex that can help their businesses run more intelligently. Sales tax automation holds the unique capability to help business become more scalable, accurate, and ready for the future.